Question: Deterministic Inventory Model problems Problem Solving: A. SleepWell Mattresses manufactures high-quality spring-based cotton mattresses. A set of eight (8) identical stainless-steel springs are used to
Deterministic Inventory Model problems


Problem Solving: A. SleepWell Mattresses manufactures high-quality spring-based cotton mattresses. A set of eight (8) identical stainless-steel springs are used to produce a mattress. The inventory holding cost for springs is P2.15 per spring per year. SleepWell has an estimated annual demand for 20,000 mattresses. Determine the quantity of springs SleepWell should procure to minimize the TC for springs if the ordering cost per order is P50? Also, compute the average inventory level. B. The annual demand for notebook binders at Meyer's Stationery Shop is 10,000 units. Brad Meyer operates his business 300 days per year and finds that deliveries from his supplier generally take five (5) working days. Calculate the reorder point for the notebook binders.. _ You have developed the following estimates for procuring an item for your manufacturing operations: D is 3,600 units yearly (10 units per day} P is P25 per item 5' is F35 per order :2 is 25% annually The following two {2) options are available for you: Option 1: the supplier can supply all items at once. Option 2: The supplier can supply 15 items per day; Based on the information you have, which of the above options would you prefer
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